Credit Union Auto Loans Set to Cap Year Past $200 Billion Mark
Thanks to a number of favorable conditions for members, credit unions could see their total vehicle loan portfolio surpass $200 billion by the end of the year.
The industry reached that mark at the end of October, according to CUNA Mutual Group’s December Credit Union Trends Report, which tracked data through October.
Since October 2012, the $20.3 billion increase in vehicle loans held by credit unions has accounted for nearly 49% of all credit union loan growth, the report noted.
New vehicle loans were up 12% year-over-year through October. While this portfolio segment was up $12 billion or 21% from its early 2012 low, it remained almost $20 billion (22%) below its early 2007 peak, according to the trends report.
Meanwhile, the used vehicle portfolio continued to expand, with the segment accounting for 19.9% of all credit union loans through the end of October and 31% of all credit union loan growth during the past year.
CUNA Mutual Chief Economist Dave Colby said credit unions are poised to build on momentum gained this year going into 2014.
“While sustaining the 2013 rate of growth will be a challenge, we will enter 2014 with considerable momentum, significantly more members, low interest rates and an improving economic and employment outlook,” Colby said.